Local people have formed a club to trade amongst themselves, using their own system of accounts. A Directory of members is compiled every three months comprising their Offers and Wants - goods, services or items for sale or hire - all priced in local credits.  Each member can then place up to 6 advertisements per issue (your offers and wants).

The Directory also includes each members balance and turnover. Members use the directory to contact each other whenever they wish.

Unlike direct barter, with LETS you can earn credits from any  member and spend them with anyone else on the scheme. You pay for any service or goods by writing a LETS credit note for the agreed amount.

The credit note is posted through the closest LETS post-box or sent direct to the local LETS administrator who adjusts both members accounts. You’ll receive a full statement of transactions every three months. 

New  Moray LETS is a local, non-profit making, co-operative.It is managed by elected local folk.

·             The management team and others who work for the scheme are paid only in LETS - (8L per hour). This is met by small quarterly charges in local credits from each members account - (4L per quarter)

·             We’re an open and ethical organisation and accounts are open to all members for inspection on request. The management of the scheme are elected by you, the members, at our Annual General Meeting.

·             There’s a social side too, with Xmas and Summer LETS Trade fairs & LETS Events. This is invaluable for helping members trade their goods and services, to meet each other and to have fun.

·             It costs just an initial membership fee of £10 (£5 unwaged) to join. This income covers all of the materials cost for items such as paper, printing, postage and telephone charges as well as other essential

£ sterling costs.

Common questions about LETS...

Q) What does LETS stand for?

A) LETS stands for Local Exchange Trading System.  There are now over 400 local LET Systems in the U.K. with over 20,000 members. New systems are being launched every week.

Q) How does LETS support the local community?

A) LETS encourages local people to trade with each other even although they have little spare money. Without the burden of interest rates and other charges it allows the wealth created to remain entirely within the local area. LETS also helps local Organisations and charities - allowing them to earn credits through their fund raising activities and ‘buy-in’ help from the wider community even though funds are tight.

Q) How does LETS support local businesses?

A) LETS helps small businesses and shops increase their customer base, and therefore turnover and extend their cash flow. Many businesses already use barter networks to do this but with LETS the service is not only cheaper, but since the credit can only be spent locally, the customer comes back again and again. LETS also creates new demand since people who could not otherwise afford to buy at all can afford to pay partly in LETS. Other participating businesses and suppliers can also be paid in LETS. A number of new businesses, both full and part time have started through LETS, assisted by the interest free credit and supportive network it offers.

Q) If I start with no LETS credits, how can I trade?

A) No problem. All LETS credits are created by trading. Everyone’s account starts at zero, but you can spend straight away from your account because LETS is interest free. In fact for the system to work, at any one time a number of accounts have to be below zero. You just earn credits by doing work for other people, whenever it suits you, so you may start spending immediately. No interest is charged and there's no fixed payment schedule. Members balances and turnover are published in the directory so as to encourage fellow members to offer work to those who need it.

Q) What exactly is a credit and what is it worth?

A) There are no physical tokens - the credits and debits you create only exist as figures recorded in the LETS accounts. They are simply a way of measuring the value of services given to others in your local community. When you receive a service you write a credit note for the agreed number of units. One LETS credit is loosely related to £1 Sterling. It does not have exactly equal value because its purchasing power is determined by what is available.

Q) Am I supposed to find a direct exchange?

A) Not at all. The reason for having an account is to enable you to earn LETS credits from any member, and spend them when you like with anyone else on the scheme.

Q) Will LETS affect tax or benefits?

A) Most trading on LETS to date is well below taxable income thresholds. People are doing irregular odd jobs e.g. repair work for one member, gardening for another. This ‘social favour’ level of trading is not of interest to the tax authorities. When a member is conducting trade on LETS as part of a regular business, any net profits (after deducting business expenses and the personal allowance) will be tax deductible in sterling - the amount payable depending on each individuals circumstances).  Self employed traders and shops must declare in their usual tax returns and declare any net profits in LETS from work in their normal line of trade (as with other retail credit schemes and loyalty schemes). They should give the amount a cash value. They can ensure that enough cash is available to cover both tax and VAT liabilities by making a percentage charge in sterling on LETS transactions.

The welfare benefit rules are more complex. Claimants should trade below 16 hours per week to keep their benefit entitlements. Strictly speaking claimants must be aware that they are available for work and are actively seeking work. LETS are unlikely to replace a full time job but are more designed for ‘occasional jobs between friends’ as they arise. Many members however use LETS to explore and establish a market in a new field and go on to set up their own business as a result.

Q) How do I price my skills/goods?

A) The choice is yours. Look in the directory to see what others are asking for their services. Or you could base your charges on an average hourly wage - or leave them open for negotiation. Low prices may attract more trade. You are entitled to charge more for difficult jobs, or a high quality of service. Whatever rates you decide to charge, you can always revise them for the next directory. Ask your sponsor if you need help.

Q) I still need cash

A) Most of us do! LETS can always be used along with cash. Ask for the cash required to cover the cost of materials, petrol etc. or for a proportion in cash (e.g. 25%) Only the LETS part is recorded on your account.

Q) Do I have to trade when someone calls me?

A) There’s never any obligation - it’s entirely up to you whether to respond to a particular request. If you’re unsure about a person’s qualifications to do a job, either ask them directly or call another member or the LETS office for a recommendation. Make sure that you are clear about the price and standard of workmanship being offered.

Q) What if I’m not satisfied with someone's work?

A) Minimise the chances of misunderstanding by agreeing clearly in advance the price, time-scale and expected standard of work. Ask about qualifications and or experience. You can also speak to others who have used that persons services. LETS like any other service directory cannot take responsibility for the quality of what is on offer, so if in doubt, check it out. If you have a problem or are unable to reach agreement, contact the LETS office for help.

Q) I have no spare time. How could I participate?

A) You can earn credits and usefully support the system by offering the hire of equipment and assets which others may need, such as a washing machine, computer, photocopier, room for meetings etc. You can also sell all kinds of goods for LETS such as clothes, records, unwanted domestic items etc. or, if you have money but no time you can exchange cash for LETS to help the systems running costs. Most LETS offer all kinds of things you cannot get in the shops or through the national yellow pages. There may be jobs around your home that you cannot find time to do which someone on the scheme can help you with.

Q) Couldn’t someone run up a huge debit, then leave?

A) It hasn’t happened. LETS has built-in safeguards. Most members are introduced by a friend who they would also be letting down, so there is a strong level of goodwill between members. Balances and turnover are published in the directory for all to see. If anyone has a large negative balance and no turnover - they are more likely to be contacted by other members asking them to trade. If the administrators receive complaints that another member is unwilling to address their commitment  - they will be removed from the system. after returning  their balance to zero by paying their balance in Lets or £’s. If you ever wish to leave the system you simply return your balance to zero. 

Q) I don’t feel I have anything to offer!

A) Many peoples reactions! One great advantage of LETS is that it helps people realise that they do have things to offer. Whether they are skilled or not, their time, energy or resources will be of value to someone. Just a few examples are shopping, answering the phone, cooking, cleaning, gardening, child care, car lifts, home equipment or tool hire. Start by asking yourself what you really enjoy doing. Or sit down with a friend and tell each other what you are good at. Take a look at the Inspiration List and fill in the LETS worksheet before finalising your directory entries. You will probably surprise yourself! 

Q) How will the scheme expand?

A) The more people who join the scheme, the more effective it becomes - encouraging more local trading and greater variety. So to promote its expansion, members receive 5 LETS for every friend they introduce. Just as with other LETS credits they earn,  these can then be used to buy goods and services from other members. If you require a service which is not included in the directory - this provides you with a rewarding opportunity to recruit a new member for the benefit of everyone! 

Q) It sounds great! - how do I join?

A) It is great!. Read the Members Agreement. Download and complete the Application form and pop it in the LETS post box along with your joining fee. We’ll send your Members Directory for you to start trading straight away. You’ll also receive your personal Credit note book. The LETS Directory will also include helpful and timely information to help you along the way